Department store chain Stage Stores is planning to shut down 90 underperforming stores as part of its multi-year plan to increase productivity.
The stores being closed represent 4% of its total sales.
Go deeper with GlobalData
Stage Stores currently operates 850 specialty department stores in 40 states and a direct-to-consumer channel under the Bealls, Goody’s, Palais Royal, Peebles and Stage nameplates.
Commenting on the closure, Stage Stores president and CEO Michael Glazer said: "The closure of stores should enhance our capital efficiency, deliver higher productivity and be accretive to earnings."
The closure comes as the retailer announces financial results for the second quarter ended 1 August.
See Also:
Stage Stores’ sales increased by 0.9% to $380.9m, when compared to the same period a year before.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe retailer’s comparable sales increased by 0.8% during the same period.
"We were challenged by the impact of a weaker peso and economic softness in parts of Texas, Louisiana, Oklahoma, and New Mexico.
"Our earnings decline over the prior year was driven by a decrease in merchandise margin as we accelerated markdowns on seasonal categories. On a comparable store basis, our quarter ending inventory, excluding cosmetics, was down by 2%," Glazer added.
The company plans to open three new stores and close 27 store locations in fiscal 2015.
